MUMBAI: Air India has appointed international property consultant DTZ as the transaction advisor for monetizing its 108 realty assets in India and abroad in a bid to lower its debt burden, said a top official of the airline.

Air India had opened the financial bids for this mandate in last week of October. Through this property monetisation programme, the national carrier is planning to raise around Rs 5,000 crore over the next 10 years by unlocking value of properties that are unused and underutilised.

DTZ declined to comment for the story. "We won't be able to comment on Air India deal as of now," said a DTZ spokesperson.

Top six property consultants had shown interest at technical-bids level to execute this property monetisation programme for Air India. However, only four - Jones Lang LaSalle India, Cushman & Wakefield, DTZ and Colliers India - had submitted their financial bids.

"For asset monetisation, we have put 10 properties on fast track, including an employees' housing colony at Nerul (in Navi Mumbai), flats in Mumbai and Hong Kong and property in Chennai," said Air India CMD Rohit Nandan.

Air India is targeting Rs 500 crore per year from such divestment of realty assets, but this will essentially not be a ceiling. The 10-year programme can be shortened based on the realty market cycle and response to the proposals.

These 108 properties also include three overseas assets and all of these can be monetised though outright sale or leasing. However, Air India's iconic headquarters in south Mumbai remains out of this contract.

Air India's internal team has already started the process to lease out around 159,000 sq ft space across 12 floors in sea-facing Air India Building in south Mumbai's central business district Nariman Point. The airline has already announced that it would move its headquarters to New Delhi from Mumbai to monetise this landmark property.

Technical bids for this proposal, which were opened last week, have received lukewarm response with only three entities bidding for the lease offer.